Arab African International Bank – Ratings and Outlook Affirmed

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed both the Long-Term Foreign Currency (LT FCR) and Short-Term Foreign Currency (ST FCR) ratings of Arab African International Bank (AAIB or the Bank) at ‘B’. At the same time, CI Ratings has affirmed AAIB’s Bank Standalone Rating (BSR) of ‘b’, Core Financial Strength (CFS) rating of ‘bb’ and Extraordinary Support Level (ESL) of High. The Outlook on the ratings remains Stable.

AAIB’s BSR is derived from a CFS rating of ‘bb’ and an Operating Environment Risk Anchor (OPERA) of ‘b’ (indicating significant risk). The CFS is underpinned by strong ownership (Egyptian and Kuwaiti governments) and by the expectation that the shareholders will continue to be willing to provide a high degree of ordinary support. The key rating supporting factors are the Bank’s improving profitability and asset quality (despite elevated Stage 2 loans), satisfactory capital position, and sound…